President Trump Approves Keystone XL Pipeline
Today, President Donald Trump together with the U.S. State Department have signed and issued a presidential permit to construct the Keystone XL pipeline.
On today's announcement, GasBuddy Senior U.S. Petroleum Analyst Patrick DeHaan noted:
After years of various delays, President Trump's administration has issued a permit for the completion of the long-awaited Keystone XL pipeline. While the impact on gasoline prices may not be immediately known or felt, the pipeline will allow more U.S. refiners to process Canadian crude oil and reduce reliance on foreign supply, while helping Canadians secure their energy future.
It may also bring a side effect of causing the typically discounted Canadian crude oil prices to rise, as more refiners and customers seek out Canadian crude oil. The impact may be felt most by refiners that already process a significant portion of such crude oil, as the low price of Canadian oil is likely to rise.
Certainly, this move is a positive one for Canadian oil interests, as it will likely boost the value of the Canadian Dollar while bringing more jobs to the energy sector there. Interestingly, it could also allow- for the first time- Canadian oil shipments access to global markets previously unreachable.
U.S. motorists are unlikely to feel an immediate impact at the pump as a result, but with the new possibilities the pipeline brings, there is no guarantee that there won't be future impacts to fuel prices.
GasBuddy Senior Canadian Petroleum Analyst Dan McTeague noted:
For Canadian oil producers, today's decision by the US President to overturn his predecessor's veto and allow construction of the Keystone XL pipeline is welcomed news.
The decision to allow Keystone XL's construction isn't about sending Canadian oil to waiting ships in the Gulf of Mexico, it is about ensuring U.S. refiners, who've invested in processing heavy oil, access to a reliable and abundant supply that responds to America's energy needs.
Today's decision is a win-win for the world's most integrated energy partnership, the U.S. and Canada. It brings North America one step closer to energy security and more stable pricing at the pumps.
Fuel price-tracker GasBuddy has been watching this issue for several years, with dozens of expert analyst writings covering the subject from both Canadian and U.S. viewpoints. Find them here: http://business.gasbuddy.com/?